IMAA ‘disappointed’ with Federal Govt proposal rejection
The Independent Media Agencies of Australia (IMAA) has expressed its disappointment after the Federal Government rejected its proposal for an independent agency consortium to service its master media account.
The proposal, which was developed in conjunction with an Australian-owned third-party management consultancy, argued for its members to share servicing the $163 million account.
On Friday morning, the IMAA said it will continue campaigning for at least 50% of the Federal and State Governments’ procurement to come from Australian-owned businesses.
“While we’re disappointed with the outcome of our proposal, we firmly believe there is still an opportunity for the Federal Government to work with indies via a consortium master media arrangement,” said Sam Buchanan, CEO of the IMAA.
“This model would provide the Government with the best of indie and holdco thinking, and a fresh, modern approach that meets the updated procurement standards. We will continue to actively engage both state and Federal Governments on the importance of allowing indie agencies to have a fair go, and to keep profits in Australia.”
In 2022, the Federal Government created new contracting rules requiring departments and agencies to source 20% of their annual procurement from small to medium enterprises, designed to give SMEs better access to large Commonwealth contracts, and include a clause requiring Government departments to break down larger projects into smaller ones, and approach multiple suppliers.
However, the IMAA said the master media tender makes its unviable and difficult for the vast majority of indies to apply. Additional updates to the Commonwealth Procurement Rules have increased SME sourcing targets further, but still seem to not apply to master media contracts.
“The Federal Government still has an opportunity to support Australian-owned businesses, however this tender appears to have been designed specifically for holdcos. A tender that the Government rinses and repeats is not suitable for today – the market has changed, and the playing field has been levelled for the best diversity of thought, and to support multiple Australian businesses. There’s more than enough business for everyone,” Buchanan continued.
“The door is still open, and we are ready to assist. Our members would love to work with the Federal Government – we’re waiting on their call.”
The incumbent agency, Universal McCann (UM) has held the Federal Government master media account since 2022.
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Lauren McNamara is a journalist at Mumbrella, covering the creative and PR beat. She joined in November 2022 as editorial assistant, after completing a Bachelor of Communications (Journalism) at UTS.
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Indies don’t have the global enterprise deals to get the data an tech you need to compete equally in a sector like this. Your “agility, flexibility, on ground support” doesn’t matter when you can’t, or charge more, for the basic services a big holding group has.
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Indies love talking about their benefits, but hate having to shell out money for what big clients demand – i.e Ad Intel
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